Adobe's user base tops 1 billion for the first time, but Morgan Stanley reiterates Underweight rating and $240 price target
Adobe Inc. (ADBE) announced on September 10 that its fiscal third-quarter results showed its total user base exceeding one billion people for the first time in company history. Despite record revenue and the fastest user growth, Morgan Stanley analyst Adam Wood reiterated an Underweight rating and a $240 price target on Adobe in a note dated September 11, the same call made two months earlier. The target sits nearly 5% below the stock's Friday closing price of $252.23. The firm cited unchanged full-year guidance for annualized recurring revenue growth (10.2%) and operating margin (45%), as well as a deceleration in remaining performance obligations growth, as reasons for caution.
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